ICBMs, Japan and Missile Defense Stocks


Jason Williams Image Jason Williams Editor, Energy and Capital

There’s always a solid argument to invest in defense stocks. The world is constantly at war. Somewhere, at all times, somebody is fighting. And defense companies are providing the weapons and technology that make it possible, notes Jason Williams, editor of Energy and Capital.

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But when the biggest economies in the world are gearing up for possible engagements, the revenue really starts rolling in for these companies. So, which ones are poised to profit the most from this most recent round of international saber-rattling?

According to the U.S. Department of Defense's Missile Defense Agency, our missile defense system is made up of four parts: sensor, boost, midcourse, and terminal.

The sensor segment entails satellites, forward-based radar units, sea-based and X band radar, early warning radar, and Aegis Ballistic Missile Defense (BMD) Spy-1 radar located on ships constantly patrolling the world’s waterways. This part detects and tracks airborne threats.

Boost is the newest technology. It’s got to do with things like surveillance drones (UAVs, or unmanned aerial vehicles) that fly around boosting the detection capabilities of the radar and satellites.

The midcourse segment consists of SM-3 missiles, ground-based interceptor missiles, and the Aegis BMD ships. These are all meant to blast an ICBM out of the sky well before it becomes a threat to its intended target.

Then we’ve got the terminal part.